As the housing market has transitioned out of a growth cycle and hit rock bottom in many regions, vendors have found it increasingly difficult to sell their properties.
Subsequently, the average time on the market has risen in many areas, the RP Data report stated.
The report looked at council areas across the capital cities and regional markets that have recorded the largest increase in their average time on the market over the 12
months to October 2011. Across the capital city markets, the premium housing suburb of Mosman Park on the shores of the Swan River in Perth recorded the largest increase
in the average time on market, an increase of 59 days to 123 days.
Across regional areas, seven council areas in both New South Wales and Victoria have been among those to record the greatest increase in average time on market,
followed by six in South Australia. Many areas within Perth feature on the list for units as do most council areas within Hobart.
Within the other capital cities, it is typically unit markets within the outer suburbs that have recorded the greatest increase in time on market.
The only mention the Far North received in the report was the Tableland unit market, with the average selling time increasing by 25 days to 125 days.
REIQ Cairns zone chairman Greg Clyde-smith said the Tableland unit “turnover” was considerably lower, as many buyers chose to buy in that particular area because they
were looking for a lifestyle change and wanted bigger blocks of land or acreage.
He said the report reflected a true value of what the country’s property is going through and sellers needed to be in tune and listen to the market trends.
“Cairns is generally faring better than many other regions of Australia as we’ve been dealing with a lower market for longer with many people growing used to this and
there’s a greater degree of acceptance,” he said.
“Days on market as a market statistic can be affected by a great many variables. However, the main one is usually a reluctance by the seller to accept the current market
levels prevailing at any time.
“If a property is priced correctly to actively compete with others on the market, and provided it’s marketed correctly, it will usually sell within 30 to 45 days. Many agents,
however, have difficulty conveying this message to sellers and many refuse to hear the message.
“In short, a seller must be prepared to accept what the market is telling them or they should not waste their time and money trying to sell and achieve an ambitious price.
Days on market is usually a reflection of the fact that the property is overpriced…”